Calculate the stock price as of today

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WXB Inc. is a high-growth company that will not pay dividends for the first 3 years. Starting in year 4, WXB Inc. will pay a dividend of $1.75, which will grow by 18% (yearly) from years 5-9, inclusive. In year 10, the dividend will grow at 4%, indefinitely. Calculate the stock price as of today. Assume the expect market return (i.e., discount) = 10%.

Reference no: EM133119345

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